Where do I begin to start saving at 36 towards Pension

IloveElephants

Sorcerer2018 said:

I think it's great you are thinking about your pension, i didn't start a pension until i got into my 30s just like you. Even if it's only £50 a month, it's a start. But yes you do have to be a bit more realistic on your goals. Some great advice for yo here so far.

Thats really good advice Steampowered thank you, yes thats a good way of looking at it. Now Im going to try and find out who my pension provider is and if I have paid into more than 1 pension company over the years possibly

IloveElephants

Sorcerer2018 said:

I think it's great you are thinking about your pension, i didn't start a pension until i got into my 30s just like you. Even if it's only £50 a month, it's a start. But yes you do have to be a bit more realistic on your goals. Some great advice for yo here so far.

Thanks Sorcerer I agree these people are wonderful on this forum and thread 

crv1963

IloveElephants said:

Hi Everyone,
I have never opened a pension before and I want to start at the late age of 36 as im worried about the state of the current economic climate.
My situation:
Single, I dont own property but would love to soon, 
I want to open a pension pot within the next month and get started as I wasted too much time already. 

I think you've been offered some good advice and education. If you don't mind I'll add my thoughts-

1) Not had a pension before- double check this you may have little pots somewhere! Mrs CRV opted to do something called SERPS years ago, forgot about it and when we tracked it/ traced it we found it was worth about 100k! The power of compounding from her age 20 years tracked down when she was 50.
2) Worried about the economic climate- waste of time, only worry about things you can control, anything else just drains you for no purpose.
3) Single- if you do form a long term relationship with a life partner then remember it is a joint venture if a couple.
4) I don't own a property but would love to soon- how soon and what steps towards this goal? How far down the deposit saving are you? How realistic is the goal where you live? Maybe consider a LISA instead of additional pension contributions- two advantages- you can use the LISA for house deposit or if that doesn't work out you can access it and use it as a pension from age 60. So unless you buy a house it is locked away until you're 60.

Then I'd look at a couple of things- how much retirement income do you want in todays figures, when do you want to retire? Try to save as much as you can using any free money you can get- tax man contributes to Pension and LISA, get the maximum contribution from an employer possible- some are generous, some give the bare legal minimum. An example is one of my sons contributes 10% salary to get employers 9% added- their maximum, the other is in a NEST scheme where employer contribute the legal minimum.

Both of my sons save - the percentage varies but they aim for 25% take home pay over the year. Oldest son also puts any windfalls such as Birthday/ Christmas money into his LISA for his house deposit. They both also live a life, have credit cards and usually pay these off in full each month.

With the restrictions on shopping/ spending from lockdown I have identified that I was wasting around 600 pm- I expect that I will increase none essential spending once all restrictions are ended but no where near that amount- I've missed some things- Fish and Chips at the Seaside, trips to my local pub, taking my Mum and/ or wife out for days out, but I'm going to be more frugal in my spending going forward.

Possibly you have a similar experience in your spending- on the other hand some work colleagues have spent much more as they discover the joy of internet spending! I like nice things but personally could never justify buying a £300 pair of boots for Mrs CRV let alone for me!!!

I think what I am trying to say is keep a balance- enjoy living, enjoy saving but don't become a slave to it. Set your plans but be prepared to adjust them as time goes on.